22nd Century Group Inc (XXII)

[Justfactsmam]

One not so obvious SP boost and benefit from up-listing to Nasdaq not addressed is "margin". Once we get to the $3 to $5 range and on Nasdaq the stock, depending upon your broker, will permit you to margin.

We all know the negatives of "over-leveraging" any asset, but prudently used, it can boost your over-all return quite significantly WITHOUT triggering those nasty short or long term capital gains taxes.

So if XXII uplisted and was at $5 and you had 50k shares you value would be $250,000, if you wanted to buy more...or invest in another of VANS new plays...no need to sell!. An investor could borrow 20% or $50k (you could borrow (Margin) up to 50% of the value, but 20 or even 10% would be conservative and much safer).

Now you have $50k freed up "tax free" in reinvest and leverage into the same or other equities to grow again. You could then acquire an additional 10k shares. The cumulative value of the entire portfolio would have to drop to $150K (or $2.50 a share)before you would have to be concerned about getting a "call".

I would not suggest it on all stocks, but XXII (personally) I would once it gained revenue traction.

Net benefits of Uplisting (with Margin available)....

1. less liquidation by investors to take profits
2. investors can re-invest gains without incurring immediate tax liabilities, in same or other new (thanks Van) opportunities.
3. New Stock reinvested from margin account can grow also without immediate tax liabilities also...leaving you with a greater portfolio.